Latha Rodgers provides a refresher of the qualifying conditions for enterprise management incentive share options and the tax benefits.
Unlike other HMRC approved share option schemes, enterprise management incentives (EMIs) can be tailored to each specific individual (e.g., for different performance conditions). They also do not need to be offered to every employee.
General requirements
EMI options must be granted for genuine commercial reasons to recruit or retain an employee. There is also an anti-avoidance requirement in that if the option is granted as part of a scheme or arrangement the main purpose of which is to avoid tax, the option does not qualify.
Employees can be granted up to £250,000 worth of shares. The value of the shares is based on the unrestricted market value (UMV) when the options are granted. The limit
